NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.
| SPONSOR: | Luna | DATE TYPED: | 02/19/99 | HB | 389 | ||
| SHORT TITLE: | Retired Veterans Exemption | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ (931.6) | Recurring | State Road | ||
| $ (140.4) | Recurring | County General | ||
| $ (140.4) | Recurring | County Road | ||
| $ (75.0) | Recurring | Muni. Street Dist. | ||
| $ (112.5) | Recurring | Counties/Munic. | ||
(Parentheses ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
This bill would exempt retired veterans who are receiving a pension and who actively served in the United States armed forces for twenty or more years from paring motor vehicle registration fees.
FISCAL IMPLICATIONS
The Taxation and Revenue Department estimates the total impact to be $1.4 million (recurring). This estimate is based on 40,000 vehicles; 20,000 pensioners with two vehicles paying an average of $70.00 annually in vehicle registration fees.
ADMINISTRATIVE IMPLICATIONS
No significant impact.
TECHNICAL ISSUES
The Veterans Service Commission reports that the definition of retired veteran may need to be expounded upon. They state that it is unclear whether this applies to a veteran who was a New Mexico resident at the time of service, and/or any veteran who was a resident of another state, who moved or intends to move to New Mexico to retire after serving twenty years.
As this bill is written, all may apply.
OTHER SUBSTANTIVE ISSUES
Mike Biarco of the Veterans Service Commission reported that a 1993 study indicated that New Mexico has one of the highest percentage of retired military personnel in terms of state population. This report revealed that in 1993, New Mexico had one hundred seventy-four thousand retired military personnel. This constituted approximately twelve percent of the state population.
This bill would only affect approximately twenty thousand of the retired military personnel.
JBE/gm